This Is How an Injective (INJ) Price Breakout Could Fail  

The Injective (INJ) price recently experienced a bullish development, but there are concerns that this upward movement may not be sustained due to growing investor skepticism.

The increasing selling pressure can be seen in the behavior of INJ holders, which is reducing the chances of a recovery.

Injective Holders Are Moving Their Holdings

Injective’s price is facing the consequences of a surge in selling among investors, leading to increased outflows on the network. The Chaikin Money Flow (CMF), which is currently at a two-month low, provides evidence of this.

The Chaikin Money Flow (CMF) is a technical analysis indicator that measures the accumulation and distribution average based on trading volume. It helps traders assess the strength of a trend by analyzing the relationship between price movements and trading volume.

A CMF above 0 indicates rising buying pressure, while a dip below 0 suggests increasing selling pressure. Currently, INJ is experiencing the latter, with the CMF sitting at its lowest point since April.

The actions of investors further support the idea of outflows. When looking at active addresses based on profitability, it is evident that those in profit have a significant presence.

This group’s participation suggests the potential for selling, and their dominance of over 25% is a bearish indication. In the case of INJ, they account for 31% of all active addresses, reinforcing the possibility of a bearish outcome.

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INJ Price Prediction: Breakout May Breakdown

Currently trading at $29.3, INJ is nearing a resistance level at $30.9. To surpass this barrier, the rally would need to continue. Considering that the altcoin recently broke out of a consolidation phase between $28.0 and $21.3, it seems plausible.

However, the aforementioned conditions suggest an alternative scenario for INJ. The breakout could fail, resulting in the price falling back below $28.0 and making it vulnerable to further consolidation.

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Nevertheless, if INJ rebounds from $28.0, having already closed above it, this could prevent the decline and potentially allow the altcoin to surpass $30.9, invalidating the bearish thesis.